Individual Assignment 1 - credit analysis report
Assessment Guidance Autumn 2024
Main objectives of this assignment:
a) To encourage students to analyse their chosen firms’ financial performance and position from 2020 to 2023 (for some firms from 2019 to 2022 due to their financial year enddate falls after June) by applying the analysis techniques learned from the modules. They are required to reformulate the financial statements in order to identify accounts related to operating, financing and investing. After that, to calculate the accounting ratios based on the reformulated financial statements. Then to evaluate their sample firms’ financial statement performance and position with referring to qualitative data – managers’ statement, notes to the accounts, external auditor’s reports.
b) Students’ own judgements and arguments based on both qualitative and quantitative data, for supporting evaluation are essential. They are required to provide comment on whether to approve the application of three years bank load from their chosen sample firms as a bank manager.
About the assignment:
1) Students are required to collect copies of chosen firm’s annual reports in the past four years, few copies of FT news in the past four years. The detail of electronic databases is printed on the course outline.
2) Writing an credit analysis report with referring to the three assignment questions.
3) Students must present full references for their assignments.
4) Students must submit copies of past financial statements only (i.e. B/S, income statements, cash flow statement, group statement of comprehensive income), not the whole annual reports, as appendices of their assignments.
5) Tables, figures, graphs, references and appendices are excluded from word limit of 2,000.
Assessment criteria:
Part a: Reformulate the financial statements of your sample firm and a competitor firm you have chosen over the four financial years from 2020 to 2023 (or from 2019 to 2022 in some cases when firms have to publish their annual report in the second half of 2024). (30%)
50%-59% (Marks: 15 – 17):
1) Introduction of the core business activities of the sample firm and competitor firms.
2) Reformulate the selected financial statements of sample firm correctly.
60%-69% (Marks: 18 – 20):
1) Introduction of the core business activities of the sample firm and competitor firms. Identifying the business strategic stage of the sample firm.
2) Reformulate the selected financial statements of both sample firms and control firms correctly.
70% or above (Marks: 21 or above):
1) Introduction of the core business activities of the sample firm and competitor firms. Identifying the business strategic stage of the sample firm with SWOT analysis, Boston Consulting Group, or Lifecycle model.
2) Reformulate the selected financial statements of both sample firms and control firms correctly, with a clear illustration about the operating, financing and investing activities.
Part b: Undertake a credit analysis based on the financial position and performance of the company you have chosen over the four financial years from 2020 to 2023 (or from 2019 to 2022 in some cases). Note: not the mostrecent year. Compare the performance and financial position of your chosen company with the data from a company’s leading competitor. (50%)
50-59% (Marks: 25 – 29):
1) Calculate ratios based on the reformulated statements and/or normal financial statements correctly.
2) Generally illustrate the changes in ratios but without support of qualitative data (like managers or student’s own view based on past news.)
60%-69% (Marks: 30 – 34):
1) Calculate ratios based on the reformulated/normal statements correctly and compare them with those of the competitor firm.
2) Critically discuss the changes in ratios with the support of qualitative data (like managers or analysts’ point of views/reasons, or student’s own view based on past news).
70% or above (Marks: 35 or above):
1) Calculate ratios based on the reformulated and normal statements correctly and compare them with those of the competitor firm.
2) Critically discuss the changes in ratios with the support of qualitative data (like managers or analysts’ point of views/reasons, or student’s own view based on past news). Students’ points of view show their understanding about the sample firm’s financial performance and position, in addition, they can clearly identify the weakness/strength of the financial performance and position of the sample firm. Their analysis is logical without contradiction.
Part c: Based on the above analysis, as a bank manager, you need to make decision on whether you approve the three years bank loan application from your sample firm. (10%)
50%-59% (Marks: 5):
Student provides his/her recommendation.
60%-69% (Marks: 6):
Student provides his/her recommendation with referring to the results of analysis.
70% or above (Marks: 7 or above):
Student provides his/her recommendation with referring to the results of analysis – this part is related to the quality of analysis.
Part d: Presentation (10%)
50%-59% (Marks: 5):
Presentation: formal references are provided, adopting well recognised data sources, and there are some minor English mistakes at illustration.
60%-69% (Marks: 6):
Presentation: formal references are provided, adopting well recognised data sources, and there are some a few English mistakes at illustration.
70% or above (Marks: 7 or above):
Presentation: formal references are provided, adopting well recognised data sources, and there is no English mistake at illustration.
(07 36334) Financial Statement Analysis and Business Valuation
Individual Assignment 2 - equity analysis report
Assessment Guidance Autumn 2024
Main objectives of this assignment:
a) To encourage students to forecast their chosen firms’ financial performance and position in 2023 (2022) by applying financial analysts’ forecast in equity report or statistical methods. Finally, to calculate the fundamental value of the sample firm’sordinary share by the end of the fourth financial year (2023, or for some firms in 2022).
b) Accuracy of the forecasts is not the focus, but students’ own judgements/ arguments/assumptions derived based on both qualitative and quantitative data, for supporting their forecasts and valuations are essential.